Sole Trader Insurance

Specialist cover for sole traders from £5 a month*

Fast, easy online quote in 90 seconds
Interest free direct debit
No hidden fees or cancellation charges

Sole trader insurance is a type of insurance which can be tailored to cover you against a wide range of risks facing your business.

As a sole trader, you are personally responsible for any liabilities your business has. This means that if a claim is made against you and you are found to be negligent, you are personally liable for the costs incurred. This is why being covered with the right business insurance can be invaluable to sole traders.

Regardless of how careful you are, poor advice given to a client, an accident on your premises or the theft of expensive equipment could cost your business - and therefore you - thousands of pounds. Our insurance for sole traders gives you peace of mind that you are covered for these eventualities and many more.

What types of insurance do sole traders need?

The type of sole trader insurance that will be suitable for your business will depend on your personal circumstances, for example the industry you work in, where you carry out your work, and whether you have any employees.

For some freelancers and contractors, clients specify that you need to be covered with certain insurance policies under the terms of the contracts, before you can begin work. It’s worth checking this before buying your insurance.

Below are the types of sole trader insurance cover available. You can add or remove covers to build a policy that suits your unique business needs.

Understanding liability insurance for sole traders

If your profession involves dealing with clients or members of the public, sole trader public liability insurance can be essential. Along with professional indemnity insurance, it is one of the most common types of business insurance for sole traders and self-employed professionals.

Public liability insurance can cover the cost of claims made by a client or member of the public if they are injured or their property is damaged during the course of your business activities, including:

Personal injury claims (slips, trips and falls) - claims compensation pay-outs
Legal protection - legal costs associated with defending a claim brought against you
Medical expenses - claims for medical fees, the costs of medicines and medical equipment, rehabilitation bills and more.

As a sole trader, being personally responsible for the losses your business makes means you could end up paying for these kinds of claims out of your own pocket. By being covered with sole trader liability insurance, you have peace of mind that you will be financially covered if this type of claim is ever made against you.

How much is public liability insurance for sole traders?

Costs for sole traders insurance can vary. At Markel Direct, we offer sole trader insurance from £5 a month for £1m worth of public liability cover*. The cost of sole trader liability insurance varies from business to business depending on your requirements, for example:

What type of business you run - the risks a builder faces will be very different to those faced by a hairdresser
What level of cover you need - the higher the cover, the higher the premiums
Which additional products you add - you can tailor your policy to add professional indemnity cover and more

It’s worthwhile remembering that the cost of insurance premiums is likely to be far less than the cost of a claim you might face if you were uninsured.

When you insure with Markel Direct, you don’t just receive our specialist cover, you gain access to some unique services designed to make your life easier. If you need legal advice, we have a 24-hour helpline where you can speak to a qualified solicitor and the Markel Business Hub - an award-winning online resource of legal and business guides, templates and content. Or if you are caught up in a fee dispute, have a public relations crisis, or are victim of a cyber-attack, we have specialist services on hand to help you out.

If you are unsure which covers your business needs, we can help you tailor your sole trader insurance. Our simple quote system allows you to choose the cover you want at a premium you can afford. Our sole trader insurance starts from £5* a month - get an online quote now.

*Price based on an IT contractor requiring £1 million of public liability insurance.

The importance of professional indemnity insurance for sole traders

Professional indemnity insurance offers you protection when something goes wrong with the professional services you provide your clients. For example, you could be an experienced tiler who’s made an error with the client’s desired tiling pattern, everyone makes mistakes. However, if you don’t have the correct cover, these mistakes can be costly.

As sole trader, professional indemnity insurance also covers:

Unintentional breach of confidentiality
Unintentional breach of copyright
Defamation and libel
Loss of documents or data
Loss of money or goods (for which you are responsible)

Not only is it essential for your peace of mind that you’re covered by professional indemnity insurance, but many clients also require you have it in place before offering a contract.

Benefits of business insurance for sole traders

If something goes wrong and a claim is made against you, we can help deal with the situation so you can concentrate on what you love doing, which is running your business.
Defending a claim can be expensive and if you’re unsuccessful, a compensation pay out could put a financial strain on your business. By obtaining the correct level of cover, you’ll be covered for legal and compensation fees.
Markel Direct policyholders have access to a 24-hour legal advice helpline, so they’re able to speak to a qualified solicitor at no additional cost

From equipment theft, third party injuries to unhappy clients, there are potential risks associated with being a sole trader. By choosing tailored insurance for sole traders from Markel Direct, you can let us worry about the risks, and you can get on with running your business.

Get a sole trader quote now

Customer reviews

4.8/5

Rated 4.8 stars from 351 customer reviews at Google

Policy Documents

Cover starting at £5 a month

Specialist insurance for sole traders

Professional indemnity insurance

An unhappy client can pose a risk to you whatever business you are in. Imagine you have replastered a client’s home during a renovation project and they’re not happy with the finish. They want compensation for the cost of putting it right and the delay in the project.

Professional indemnity insurance covers the cost of defending your business against allegations of professional negligence and any compensation or damages subsequently awarded against you.
Public and product liability insurance

Anyone can knock over a cup of coffee - accidents happen to even the most careful person. But if you spill it over a client’s brand-new designer sofa while sharing designs for their garden project, they will likely hold you liable.

Public and product liability insurance covers the cost of defending your business if someone is injured, or their property damaged, which arises from you going about your business or supplying products.
Employer’s liability insurance

If you have any employees, you must be covered. If one of them trips on a loose cable at work and sustains an injury, you could be held accountable.

Employers’ liability insurance covers your business against claims for injury or illness suffered by employees arising from their employment. Regardless of the industry you work in, if your business employs staff, it is a legal requirement for you to have this cover.
Legal expenses insurance

A lengthy dispute over the scope of work on a refurbishment project could leave you with a hefty lawyer’s bill you can’t afford to pay.

Legal expenses insurance pays your legal costs and expenses for contract disputes, tax enquiries (including IR35), attending jury service, debt recovery, personal injury, as well as any award you are required to pay following an employment dispute with an employee.
Office insurance

If there is a break-in at your office and expensive computer equipment is stolen, the cost of replacing it could be a significant financial loss.

Office insurance covers your office buildings, contents, and computer equipment against accidental damage (including theft) whilst on your premises. Additional options include cover for portable equipment (such as laptops and mobile phones) anywhere in the world, and loss of income and/or additional trading expenses following damage to your property.
Occupational personal accident insurance

Occupational personal accident insurance provides a weekly payment if you are unable to work due to temporary total disablement (subject to a 14-day deferment period) due to an accident at work, or when travelling to and from work. In the event of loss of limbs, sight, speech, hearing, permanent total disablement or death, a lump sum would be paid out. You should consider this cover if you would struggle to maintain an income following an accident that left you unable to work. Limits from £100/week to £500/week for temporary total disablement (£25k lump sum to £100k lump sum for permanent total disablement).
Cyber and data risks insurance

Like many sole traders, you may hold confidential information about clients and their projects on your computer. Were you to be a victim of a targeted cyber-attack, you may be liable to pay damages to those clients.

Cyber and data risks insurance pays the costs of restoring data and equipment, informing clients, meeting ransom demands, and loss of your net profit following a cyber-attack. As well as any legal defence costs and damages.
Goods in transit insurance

If you are tradesperson transporting expensive materials to a job, the goods in your van will be worth a lot of money. Were you to be involved in an accident and the materials damaged, the financial loss could be considerable.

Goods in transit insurance provides cover for theft, loss, or damage whilst in transit, or damage caused by an accident during transit. It will pay out to cover the cost of repairing or replacing the damaged or stolen goods.
Tools insurance

As any tradesperson knows, your tools are your livelihood. Whether you’re a builder, mechanic, or locksmith, without your tools, you’ll be unable to complete work for clients.

Tools insurance can be added to our insurance for sole traders or our specialist tradesman insurance. It covers the cost of replacing or repairing your equipment - including power tools and handheld tools - if it is damaged or lost.

Need some help?

0800 640 6600

Mon - Fri 08:30 - 17:30

Local rate and mobile friendly

Frequently asked questions

Cover starting at £5 a month

Frequently asked questions

What's the difference between professional indemnity insurance and public liability?

Professional indemnity insurance covers against allegations of professional negligence - which means it would cover you if you were to make an error or mistake in a piece of work (such as a project or report) for a client.

Public liability insurance covers against allegations of injury or illness caused to third parties by your negligence. This includes many of the slips, trips and falls that are associated with personal injury claims. In addition, public liability insurance covers against damage to third party property - for example, if you were to damage a client-owned laptop or smartphone.

As they insure against different scenarios, it's important you consider including both types of cover in your insurance for sole traders policy to ensure you are properly protected.
I need to arrange insurance to start work - do you provide proof of cover?

Yes. We provide a dedicated 'Confirmation of Liability Insurance' document - detailing the cover you have with us - as part of the documents that are emailed to you. You can present this document to agencies and clients as proof that you are insured.
What limit of cover should I choose?

Many clients and industry bodies with regulatory requirements will require you to have a minimum level of cover in order for you to undertake a contract, so it's worth checking this before you arrange cover. If you're unsure, give some thought to a worst-case scenario and the likely costs involved in putting your mistake right. We offer a range of limits on sole trader insurance, so you're sure to find the right cover for your business.
Why should I choose Markel’s insurance?

Markel has over 25 years of experience insuring contractors, consultants and self-employed professionals. We insure over 200,000 micro businesses and are highly rated by our customers at Feefo.com.

We are a division of Markel International, a Lloyd’s and London market insurer that wrote gross premium totals of £2.4bn in 2023

To talk about your insurance requirements and better understand our cover, call us on 0800 640 6600 or get a quick quote online.
How are Markel Direct regulated?

Markel International Insurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Find out more on the Financial Services Register.

Access these policyholder services when you insure with Markel

Our policyholders receive access to these unique services designed to make your life easier (included as standard with certain covers).

24 hour legal advice helpline

When you insure with Markel, you'll benefit from 24/7 telephone access to a qualified solicitor at no additional cost. Expert legal advice can be costly when you're working for yourself and it's difficult to know who to turn to for a trustworthy answer. Whether it's a question on health and safety, employment law, legal structures for your business or how to handle a difficult client, an experienced team of solicitors are on hand day and night to help you with any business-related legal queries. Included as standard with all policies.

Markel Business Hub access

In addition to our 24 hour legal helpline, you'll have access to the Markel Business Hub - an award winning online resource of legal and business guides, templates and content written and created by our team of expert solicitors. Instantly download ready-made contracts, policies, procedures and guidance you can use for your business - without paying any expensive legal fees. Included as standard with all policies.

Fee dispute service

Customers don't always pay on time and chasing fees or invoices costs time and money. Mindful of the impact this has on your business, we offer our policyholders access to a unique fee dispute helpline operated by one of the UK's leading law firms, who will provide specialist legal guidance and support on fee dispute issues. Included as standard with professional indemnity insurance.

Public relations crisis management service

In today's 24 hour news culture, public relations disasters can occur at any time. Having to deal with the press whilst managing a difficult situation can be hugely stressful as well as being a potential minefield. When there is a risk to your business as a result of negative press attention, our specialist public relations crisis management firm, The Counsel House, will work with you to help manage allegations of fraud, injury caused to employees or the public, and official investigations into your company's affairs. Included as standard with professional indemnity insurance, directors and officers insurance, cyber and data risks insurance and legal representation and employment disputes insurance.

Cyber response helpline

If you're the victim of a targeted cyber attack, our cyber response helpline provides access to specialist solicitors and information security experts who will give expert legal and technical IT security guidance on the issues arising from cyber and data protection risks. Included as standard with cyber and data risks insurance.

Sole Trader Insurance